Retirement Planning - Lessons Learned

[ultrarunner]

One lesson is if you don't work, you can get free government paid medical insurance.

This is the retirement plan of many...

New Toyota Corolla in driveway, Section 8 pays 2500 rent each month... you pay $125

All utilities discounted... cell free... high speed internet $10.

It is an entire way of life many have no idea it exists... even paid to take care of your grandkids.

Medical full coverage often at no cost including prescriptions.

Discounted Public transportation.

It must be good because the wait list for a single family home voucher is 5-7 years..

 

[MossRoad]

This is the retirement plan of many...

New Toyota Corolla in driveway, Section 8 pays 2500 rent each month... you pay $125

All utilities discounted... cell free... high speed internet $10.

It is an entire way of life many have no idea it exists... even paid to take care of your grandkids.

Medical full coverage often at no cost including prescriptions.

Discounted Public transportation.

It must be good because the wait list for a single family home voucher is 5-7 years..

They say Californy is the place you aughtn't go
So they loaded up the truck and they moved to Idaho.

Potatoes
Frenchfries

 

[RustyA]

Back to the debt discussion I read a great book when I was young called How To Beat The Salary Trap. Rule #1 was pay yourself first, live on 90% of your income and invest the difference...this was pre 401k. Rule #2 never finance a depreciating asset. At the time it was the best advice I had ever heard.

 

[ultrarunner]

They say Californy is the place you aughtn't go
So they loaded up the truck and they moved to Idaho.

Potatoes
Frenchfries

Yes... demographics changing....

Cashing out and blowing out your debt with leftover cash sufficient to buy in another state is a popular option for those with equity.

(It use to be head for the foothills)

Among my 30 something neighbors several have said is this where we want to be ten years from now or forever when retired?

Often the answer is no and another SOLD sign goes up... these are all people of means... many in tech or medical...

 

[Macinnis]

Never say never
My second house was bought in 1984 when interest rates were over 12% for my adjustable rate loan.
30-Year Fixed-Rate Mortgages Since 1971 - Freddie Mac
It had a "cap" of 14 or 15% MAX. When I asked the loan officer what was the bottom "cap" they laughed at me.
I rode that loan down to about 6%.
I had a bunch of treasury bills at 14%. Used to stop downtown at the treasury building for lunch and buy them.

Definitely.
Borrow on an auto loan at 1%, make better money elsewhere.

I believe my dad said his first home loan was like 18% or something crazy like that in the late 60’s. He was an attorney, who did ok, nothing crazy.

I just don’t understand not using credit like any other tool. If you can pay cash, why not keep that cash and pay a little finance charge less than whatever that cash would do whereever it’s parked?

my first house was about 8.5% interest, now it’s 3.5%. Cheapest loan ever for me.

 

[caver]

They say Californy is the place you aughtn't go
So they loaded up the truck and they moved to Idaho.

Potatoes
Frenchfries

read up on J.R. Simplot. there was a rags to riches story. I was on a commercial rafting trip down the Middle Fork of the Salmon and one of the guides pointed out land his family still owned. the only way in is river, horseback or plane since it's surrounded by a wilderness area. Scroll down a little in the link. J.R. Simplot Company -- Company History

 

[goeduck]

This is the retirement plan of many...

New Toyota Corolla in driveway, Section 8 pays 2500 rent each month... you pay $125

All utilities discounted... cell free... high speed internet $10.

It is an entire way of life many have no idea it exists... even paid to take care of your grandkids.

Medical full coverage often at no cost including prescriptions.

Discounted Public transportation.

It must be good because the wait list for a single family home voucher is 5-7 years..

I wish I was as privileged as those "poor" taking advantage of the working stiff paying the bills.

 

[Frankenkubota]

I'm 69, wife 67. Both Anthem Blue Cross, both (part F now I'm thinking G) so it's like $150 deductible per year. She has prescription (D?). Each is about $150-$200/month so not bad at all.
Yes, I'd also like economics lesson.

i'd like a medicare lesson

part x,y,z

 

[Frankenkubota]

This is the retirement plan of many...

New Toyota Corolla in driveway, Section 8 pays 2500 rent each month... you pay $125

All utilities discounted... cell free... high speed internet $10.

It is an entire way of life many have no idea it exists... even paid to take care of your grandkids.

Medical full coverage often at no cost including prescriptions.

Discounted Public transportation.

It must be good because the wait list for a single family home voucher is 5-7 years..

you are forgetting child care, food stamps, medicaid, the list just goes on and on. Free internet so they can look for a job?

the best one was they were having pizza delivered on food stamps while they squat on the couch to watch jerry springer, that was portland. had to stop that.

article 10 years ago said single gal with 2 kids would need to make $65K per year to just break even. they don't qualify for a $65K job and....who's gonna do that anyway?

another good one was/is....in some areas, if you are on medical weed and on welfare, you get a huge discount and.......wait for it.....they deliver it to you.

A few years ago i read the average age for a grandmother in one federal housing project is 32. that's a career choice with no other options.

food stamps have a direct and indisputable link to the obesity epidemic....that from the dept of ag web site.

then, look into corp welfare and govt employment. lots of folks willing to take what they can.

It's hard to blame people, the welfare queens or the Warren Buffetts for taking advantage of any situation, that's exactly what people do.

It's the govt and their band aid after the fact knee jerk reactions.

It's the government, not the people.

 

[KennyG]

Borrowing money can be a very smart financial move, but it always comes with a risk when you borrow at a fixed rate to keep other assets invested at uncertain rates. The real problem with credit (and the reason some advisors are so against it) is that it encourages people to buy things they really don't need and keeps them from making adequate investment for the future.